Tough read on golf demand from Dick's


Execs with Dick's Sporting Goods (DKS -1.2%) delivered a somber outlook on demand for golf apparel and equipment during the firm's conference call yesterday.

The company saw sales drop 10% at its Golf Galaxy business and decline at a high single digit rate at Dick's stores.

"We don't feel we found that bottom yet in the golf sales number," warns management.

Callaway Golf (ELY +0.5%) is the company standing in harm's way if golf demand stays weak.

Earnings call transcript

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Comments (3)
  • the bomber
    , contributor
    Comments (3) | Send Message
     
    Golf = Gold?
    21 May 2014, 10:00 AM Reply Like
  • Debutant
    , contributor
    Comments (2702) | Send Message
     
    Gold or golF?
    21 May 2014, 10:00 AM Reply Like
  • King Rat
    , contributor
    Comments (1363) | Send Message
     
    A friend wanted to buy a golf umbrella for an anniversary present. She went to a number of golf-related retail locations including 2 country clubs to try to buy an American-made golf umbrella. No dice. Every single person she talked to was shocked by her shock that they were all made in China. "But they sell for several hundred dollars. How much margin would it cost to make them in the US?" she asked to the inevitable guffaw.

     

    No wonder these stores have slowing business. Even the upper class is realizing the absurdity of the situation. "Woman, this umbrella worth $60 that customers happily buy for $320 would have to cost $330 if it were made in America. Our customers value value and wouldn't go for that."

     

    Supporting American businesses just because they are American is silly, but at least that would foster good supplier relations. Paying a luxury premium for a product built with cost in mind is just bad business sense.
    21 May 2014, 11:08 AM Reply Like
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